6.5.10 Clearances and Recoveries

Clearances from Commonwealth Superannuation Corporation, Centrelink and under the VEA should be sought prior to commencement of incapacity payments, and in the case of VEA clearances, whenever there is a change in the weekly rate of incapacity payments.

6.5.10.1 Centrelink Clearances

Section 1182 of the Social Security Act 1991 authorise Centrelink to serve a notice on MRCC requiring MRCC to advise Centrelink of any intention to pay weekly incapacity benefits (including a lump-sum payment of arrears). Centrelink is also authorised to recover any social security overpayment from the weekly incapacity payments made under the MRCA. If the person has indicated that they have been in receipt of a Centrelink benefit then we should seek their clearance prior to making payments.

6.5.10.2 VEA Clearances

Where an initial check of VIEW indicates dual eligibility under the VEA, and a weekly incapacity entitlement amount has been calculated, a clearance for the proposed weekly payment amount should be sought from the Disability Pension and Income support areas of DVA Clearances should also be sought whenever there is a change in the client's weekly rate. This clearance should indicate all the SRCA and MRCA conditions contributing to the incapacity (not just the condition against which we are paying incapacity).

6.5.10.3 Commonwealth Superannuation Corporation Clearances

A clearance from Commonwealth Superannuation Corporation should be sought prior to the initial payment of incapacity benefits. A new clearance should be sought at age 55, or when the person reaches their minimum retirement age (preservation age, see 6.6.6.7), to establish if the person has received their productivity superannuation benefit.

Occasionally Commonwealth Superannuation Corporation will reclassify a person’s invalidity retirement pension which may result in an overpayment of incapacity benefits. At these times Commonwealth Superannuation Corporation will notify DVA of the reclassification and provide the opportunity for DVA, within 2 working days, to advise the amount of overpaid incapacity benefits arising as a result of the reclassification. This provides the opportunity to recover the overpaid incapacity benefits from the Commonwealth superannuation arrears payment. Full details of Commonwealth Superannuation Corporation overpayment recovery procedures are set out at 2.2.10 of the Procedural Guidelines for Recovering Overpayment of compensation payments under the SRCA and MRCA .